Economic and Preferential Drivers of the Explosion in Chinese Wine Imports from 2001-2015
Open Access
- Author:
- Dolan, Tyler
- Area of Honors:
- Economics
- Degree:
- Bachelor of Science
- Document Type:
- Thesis
- Thesis Supervisors:
- Delina E Agnosteva, Thesis Supervisor
Russell Paul Chuderewicz, Thesis Honors Advisor - Keywords:
- wine
trade
china
preferences
luxury
status
imports - Abstract:
- Chinese wine imports have grown over 6000% since the beginning of the 2000s, far outpacing both nearby countries and typical economic determinants of consumption, neither experiencing over 1000% growth in any category. This paper seeks to determine whether a specific set of preferences among Chinese wine consumers has driven this growth beyond economic factors alone. Previous literature suggests that China tends to have an affinity for French red wine and may also treat wine as a status-bolstering luxury good when given as a gift or served on special occasions. No literature to date, however, has shown which specific preference deviations, if any, from similar nations explain the monstrous growth observed in the market. An ordinary least squares regression analysis is employed to isolate wine demand drivers which appear more significant for Chinese imports compared to South Korea, Thailand, Taiwan, and Japan. The variables that are expected to attain statistical significance are then analyzed directly for China to determine if the deviations expected from the comparative regressions have cultural relevance alongside quantitative explanatory significance. Preliminary results imply non-economic determinants consistent with expectations including a predisposition toward luxury and quality, supported by France as a preferred country-of-origin. These findings imply a clear set of culturally dictated wine preferences in China; similar cultural patterns in other nations or parallel treatment of another market by Chinese consumers could warrant further exploration and potentially support future commercial and political endeavors.